When You See the Message That a Sale Has Caused

question 31

Multiple Choice

When you see the message that a sale has caused one or more items to drop below the reorder point,you should -

• A)cancel the sale
• B)reduce the quantity for the sale
• C)review the inventory statistics reports to see the items that you need to reorder
• D)review the inventory quantity reports to see the items that you need to reorder

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Definitions:

Total Revenue

The total income generated from the sale of goods or services by a company.

Profitable One

An entity or venture that generates income exceeding its costs and expenses, thereby yielding a surplus or profit.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue gained from selling it, indicating it’s not profitable to increase production.

Profit Maximized

The point at which a firm achieves the highest possible profit, typically by adjusting output levels or prices.